Vietnam Insider

On November 9, Da Nang’s Department of Tourism announced positive results from a recent tourism promotion trip to Kunming and Chongqing in China.

From November 3 to 8, a delegation from Da Nang’s Department of Tourism participated in the Vietnam Culture and Tourism Festival in Kunming and a cultural and tourism promotion event in Chongqing. This activity marked the 75th anniversary of diplomatic relations between Vietnam and China, providing an opportunity for localities, including Da Nang, to promote new destinations and unique tourism products to the Chinese market.

The program featured cultural performances and a space showcasing Vietnamese culture and tourism, with participation from Vietnamese expatriates, media outlets, travel bloggers, tour operators, travel agencies, and major airlines.

Mr. Tan Van Vuong, Deputy Director of Da Nang’s Department of Tourism and head of the delegation, shared that Da Nang tourism focused on promoting beach resorts, cultural tourism, cuisine, shopping, MICE tourism, golf, wedding tourism, and festivals and events to travel agencies in Kunming and Chongqing.

Local authorities and businesses, including Da Nang’s tourism sector, had the opportunity to connect, exchange, and present products and services to partners, fostering mutual exchange of visitors.

The Da Nang delegation also met with the Yunnan Provincial Department of Culture and Tourism and the Chongqing Municipal Cultural and Tourism Development Committee to present Da Nang’s attractions, products, and services tailored for Chinese tourists. They also shared recent achievements in visitor attraction and proposed opening new flight routes from Yunnan and Chongqing to Da Nang to strengthen tourism exchange.

Mr. Tan Van Vuong stated, “Da Nang has long been a favorite destination for Chinese tourists. Through this program, we aim to restore Da Nang’s tourism presence in China, promoting the image of a safe, friendly, and welcoming Da Nang, as well as introducing new tourism products to the Chinese market.”

According to Da Nang’s Department of Tourism, from 2016 to 2019, China was consistently a key tourism market for Da Nang, with annual growth in visitor numbers. In 2019 alone, Da Nang connected to 26 regular and charter flights to major cities in China.

Source: thanhnien.vn

As the year-end months approach, the demand for cars among Vietnamese consumers continues to rise, with domestically assembled vehicles benefiting from a 50% reduction in registration fees being favored over imported cars.

Increased travel needs and work-related purposes drive more Vietnamese to purchase cars, mainly choosing domestically assembled passenger vehicles with under 9 seats, which are eligible for the 50% registration fee discount. This policy has boosted the consumption of locally produced cars, helping them regain a competitive edge over imported models.

Growing Demand for New Cars Among Vietnamese Consumers

Efforts from manufacturers and distributors, combined with the increasing demand for new cars among Vietnamese consumers toward the end of the year, are driving growth in the automotive market. This trend is reflected in the October 2024 sales results reported by the Vietnam Automobile Manufacturers Association (VAMA).

Specifically, according to the latest sales data from VAMA, in October 2024, total sales of various types of vehicles from VAMA members reached 38,761 units, an increase of 2,176 vehicles (approximately 6%) compared to September 2024. This marks the second consecutive month that the Vietnamese automobile market has grown, maintaining sales above 35,000 units.

“The market’s continued growth momentum in October 2024, with sales reaching nearly 40,000 units, is a result of government support for domestically assembled cars and the efforts of automotive manufacturers and dealers,” shared the head of sales at a Ford dealership in Ho Chi Minh City.

Alongside the 50% reduction in registration fees for domestically assembled vehicles under Decree 109/2024/ND-CP, many assembled and imported car models are also benefiting from special promotions offered by car manufacturers and dealerships. These discounts have significantly reduced car prices, boosting consumer interest.

Including 7,639 vehicles assembled and distributed by TC Motor in October 2024, Vietnamese consumers purchased a total of 46,400 vehicles, an increase of 3,297 units (around 7.1%) compared to September 2024. Among these, passenger cars with under 9 seats remain the majority, reflecting a rising demand for personal, family, and work-related vehicles in Vietnam.

Leveraging Registration Fee Incentives, Domestic Cars Turn the Tables

Similar to September 2024, when Decree 109/2024/ND-CP officially took effect, the “booster” of a 50% reduction in registration fees once again proved effective, helping domestically assembled cars achieve strong sales growth and turn the tables on imported vehicles.

In October 2024, sales of domestically assembled cars reached 21,113 units, an 8% increase, while completely built-up (CBU) imported cars reached only 17,648 units, up by 3% from the previous month.

VAMA data shows that, excluding models assembled and distributed by TC Motor and electric car sales, domestic vehicle sales still demonstrate the effectiveness of the reduced registration fee policy for “domestic” cars.

After the first ten months of 2024, imported car sales reached 129,590 units, up 34.9% compared to the same period last year, yet still lower than the sales of domestically assembled cars, which totaled 134,754 units (a 3% decrease from the previous year). Thus, after months of trailing behind imported cars, domestically assembled cars have successfully turned the tide.

Source: thanhnien.vn

The Ao Dai street, which has taken shape for over half a century on Pasteur Street, stretches more than 1 km and is home to nearly 20 shops specializing in tailoring and designing Ao Dai.

We visited Pasteur Street’s Ao Dai district on the afternoon of November 13, riding beneath the soft, golden sunlight cast behind us. Along the street, Ao Dai design shops stand side by side, creating a strip of delicate silk. This street is accessible from many directions within Ho Chi Minh City.

To me, Pasteur Street has a romantic and poetic charm, with wide sidewalks, tall trees lining both sides, casting shadows interspersed with golden sunlight on the pavement. The street also exudes elegance and timelessness with its preserved French architectural landmarks, such as the over-130-year-old Pasteur Institute of Ho Chi Minh City.

Grace Amidst the Urban Heart

Stopping by the Pasteur Institute in Ho Chi Minh City, we were struck by the tailor shops across the street. The storefronts display a variety of Ao Dai designs, ranging from traditional to modern styles.

We met an elderly man with a gentle face, dressed elegantly, delicately handling a piece of pink fabric. His hands moved gracefully and meticulously as he measured and sketched chalk lines onto the cloth.

This was Mr. Nguyen Van Toan, 77, owner of Thanh Ha Tailor Shop and the first generation in his family to uphold a three-generation legacy of Ao Dai tailoring. He shared with us the rich history of Ao Dai tailoring, a craft he has dedicated himself to for 61 years.

Mr. Toan recalled that in the 1950s, everyone in the Ao Dai tailoring world knew of Saigon’s “Curve Wizard,” Mrs. Nguyen Thi Bac, owner of the famous Thiet Lap tailor shop on Pasteur Street, District 3, Ho Chi Minh City. Mrs. Bac laid the foundation for Pasteur Street’s Ao Dai district. At that time, Thiet Lap was a renowned Ao Dai shop with a team of 50 tailors, becoming a “phenomenon” as nightclub singers and the elite flocked there to wear the coveted “wasp-waist” Ao Dai. Later, when Mrs. Bac settled abroad, she passed down the craft to her descendants.

Mr. Toan’s shop became the third Ao Dai tailor shop on Pasteur Street (after Thiet Lap and Nha). Initially, he worked as a contract tailor for various shops and sold his creations in Cho Lon. By 2000, driven by the desire for a supportive business community and noticing Pasteur Street’s appeal to foreign visitors and its central location, he decided to move his shop there.

At that time, the street had only about three or four shops, but over the years, the number of stores gradually increased.

Having been connected to the Ao Dai for over half a century, Mr. Toan shared that in the 1960s and 1970s, Ao Dai was seen as the standard of beauty. The tightly-fitted Ao Dai, with a cinched waist emphasizing an alluring hourglass shape, was considered “fashionable” and dominated Saigon’s streets.

After 1975, the popularity of Ao Dai declined, losing its exclusive status as Western-style clothing began to gain favor.

Over 60 Years Living with Ao Dai

Mr. Toan has continuously adapted Ao Dai designs to meet changing customer preferences. In the past, people preferred Ao Dai with raglan sleeves (where the sleeves extend from the collar to provide a snug fit and reduce creases around the shoulders and armpits) and a traditional high collar.

Today, customers favor modernized Ao Dai styles, with innovations such as deep necklines, lotus leaf collars, heart-shaped collars, and intricate embellishments like gemstones and floral embroidery—creating a fresh look while maintaining the inherent elegance and grace.

“In addition to my own designs, I also tailor based on customers’ ideas. For instance, if a customer wants a unique Ao Dai with shoulders like a dress, I’ll create it as requested. One must always change, innovate designs to keep up with the times and trends,” Mr. Toan explained.

The price of an Ao Dai at Mr. Toan’s shop varies depending on the fabric and design. For regular fabrics, the cost can be around VND 1 million. For high-end materials like silk, lace, or imported fabrics, the price can reach several tens of millions of dong.

Mr. Toan believes that the true value of an Ao Dai lies in the dedication of the tailor and the happiness of the wearer. “In this traditional Ao Dai tailoring craft, just seeing people wear it beautifully on the street makes me happy,” he says with a warm smile.

While time has changed many things and Saigon no longer has the quiet charm of the past, Pasteur’s Ao Dai street continues to thrive alongside the city’s modern pulse. According to long-time artisans here, handcrafted Ao Dai faces challenges due to the impact of Covid-19 and competition from mass-produced, affordable, and convenient products.

Amid the bustling urban landscape, surrounded by skyscrapers and the city’s fast-paced rhythm, Pasteur Street preserves the timeless beauty of the nation. Many young people and foreign visitors come to Pasteur’s Ao Dai street, seeking a sense of nostalgia and a unique beauty found nowhere else.

When visiting, as we admire the flowing, graceful, and elegant Ao Dai, we can catch a glimpse of memories from bygone years.

Source: thanhnien.vn

Individual customers’ deposits continue to flow into the banking system despite savings interest rates remaining low.

Deposits Reach Record High

According to recent data from the State Bank of Vietnam (SBV), as of the end of August, citizens have deposited over VND 6,924 trillion, marking a 6% increase compared to the end of 2023. In August alone, banks mobilized an additional VND 86 trillion from individuals, bringing the total increase in deposits since the beginning of the year to over VND 392 trillion. This marks the second consecutive month of growth. On average, individual customers deposited over VND 2.866 trillion per day in August, four times the average daily amount of the previous month, which was only VND 700 billion per day. Over the first eight months of 2024, residential deposits showed positive growth each month, with January as the only exception, showing a decline. Notably, individual deposits have surpassed those of economic organizations.

Not only individual deposits but also deposits from economic organizations increased in August by VND 68 trillion from the previous month, reaching VND 6.836 trillion. However, compared to the end of 2023, deposits from organizations still recorded a decrease of 0.05% (down by VND 5 trillion). Over the first eight months, organizational deposits continuously showed negative growth, with June as the only month with positive growth.

The total payment instruments in August increased by VND 257 trillion from the previous month, raising the growth compared to the end of 2023 to 4.12%, reaching VND 16.658 trillion. Among this, deposits from individuals and economic organizations reached a record level of more than VND 13.762 trillion. According to data from the SBV, total deposits by the end of October were estimated at VND 14.5 trillion, indicating continued deposit growth in September and October.

In Ho Chi Minh City, the capital mobilization rate by banks outpaced lending. The SBV branch in Ho Chi Minh City reported that credit growth over the ten months reached 6.87%, while banks’ capital mobilization increased by 8.9% compared to the end of 2023. Loan outstanding balances amounted to VND 3.7 trillion, while deposit mobilization reached VND 3.8 trillion.

Notably, individual deposits continue flowing into banks despite low savings interest rates, even though deposit interest rates began to increase slightly in April. Moving into November, some banks raised their deposit rates by about 0.1-0.6%, but current deposit interest rates remain between 5-7% per year for 12-month terms and 4.5-5% per year for 6-9 month terms.

Idle Money Seeking an Outlet

Assoc. Prof. Dr. Nguyen Huu Huan from the University of Economics Ho Chi Minh City noted that this trend suggests that savings deposits remain a safe haven while waiting for other investment channels to become more attractive. Currently, real estate and stocks are still unappealing, and while gold prices rose significantly in 2024, people with available funds have found it difficult to purchase. “A friend of mine has VND 8 billion in bank deposits. When gold prices were around VND 80 million per tael, he planned to shift his savings into gold. However, banks and gold trading companies only sold small amounts—one tael at a time—making it uncertain how long it would take to buy 100 taels. Unable to purchase gold, he continued depositing his money in the bank at a 6% interest rate, earning VND 35 million in interest monthly,” Huan explained.

In reality, among investment channels, gold has seen the strongest price increase. As of now, SJC gold bars have risen by VND 10 million per tael (equivalent to a 13.5% increase), with peaks of up to VND 18 million per tael (a 24.3% increase). On November 13, SJC gold trading units were buying at VND 80.5 million per tael and selling at VND 84 million. Meanwhile, gold prices in the free market were down VND 1 million per tael compared to official systems, with SJC gold bars selling for approximately VND 83 million per tael and buying at VND 82 million. For those holding gold rings, the price increase ranged from VND 20 to 27 million per tael (up 31.5% to 42%). On November 13, the buying price of gold rings hovered around VND 80.8 – 81.2 million, with selling prices from VND 83 – 83.2 million. However, as mentioned, low liquidity and difficulty in buying and selling remain limitations for this investment channel.

Regarding the increase in organizational deposits, Mr. Nguyen Huu Huan expressed some doubts. He noted that the rise in August might be seasonal, as funds are received for payments but not yet allocated to production or business activities. However, the increase in organizational deposits in September and October is concerning because the end of the year is typically a period of higher individual spending, which generally leads to a slower growth in both individual and organizational deposits toward year-end.

Sharing the same view, financial expert Huynh Trung Minh believes that as other investment channels still carry risks, cash flow temporarily seeks safety in savings. For instance, real estate prices in certain areas are currently high, deterring investors. Additionally, real estate companies are facing financial difficulties, so when launching new projects, individuals are cautious, weighing various factors before deciding to invest. As for stocks, not everyone has enough knowledge to risk investing.

“In fact, the gold market has been the most dynamic in 2024, with prices fluctuating continuously. However, the domestic gold market is regulated, making it difficult to purchase gold. Moreover, individuals are only allowed to buy one tael at a time, and purchasing in larger quantities requires turning to the free market. However, regulations only permit SJC gold bars to be traded at licensed outlets, meaning buying and selling SJC gold bars in the free market is illegal and may result in fines or confiscation, similar to foreign currency violations. Additionally, many forecasts indicate that global gold prices will continue to fluctuate, especially as U.S. President-elect Donald Trump implements new economic policies. This could lead to significant gold price swings in the near future,” Minh explained.

Source: thanhnien.vn

The Ministry of Transport (Bộ GTVT) believes that choosing the route for the North-South high-speed railway to pass through Nam Định City offers an estimated benefit of around USD 400 million over 30 years, compared to a direct route that bypasses this area.

This information was presented by the Ministry of Transport in a report addressing the feedback and explanations provided to the Standing Committee of the National Assembly regarding the North-South high-speed railway project.

Previously, the reviewing authority suggested clarifying the route direction following the principle of “as straight as possible,” especially in the section passing through Nam Dinh Province, to ensure the project’s effectiveness.

According to the Ministry of Transport, the route through Nam Dinh Province has been studied to ensure alignment with the national, regional, and provincial planning frameworks. During the research process, the design unit proposed three options for analysis and comparison.

•Option 1 routes closer to Nam Dinh City, with the station located approximately 5 km from the city center.

•Option 2 routes farther from the city center, with the station about 12 km away.

•Option 3 extends the route directly connecting Ha Nam and Ninh Binh without passing through Nam Dinh.

According to Ministry of Transport leaders, Nam Dinh City, serving as the southern center of the Northern Coastal Region, has a projected population of about 600,000 by 2040. It is a transportation hub with high transport demand and attracts nearby areas in the Red River Delta, such as Thai Binh and Hung Yen.

By 2050, the demand for arriving and departing passengers at Nam Dinh station is forecasted to reach nearly 3 million passengers per year. Additionally, if investment and operational costs are calculated over 30 years, the section passing through Nam Dinh (12 km) will cost approximately USD 1.66 billion, with estimated benefits of USD 2.06 billion.

The report notes that operating the high-speed rail line through Nam Dinh City would yield an estimated USD 400 million in benefits over 30 years compared to a direct route bypassing the area. Furthermore, global experience shows that many high-speed rail routes bypass large centers to attract passengers, as seen in Japan, South Korea, and Germany.

In discussions on November 13 regarding the investment policy for the North-South high-speed railway project, delegate Nguyen Hai Dung (from Nam Dinh) also emphasized that the high-speed railway station is included in the national and provincial railway planning for Nam Dinh Province for the 2021–2030 period, with a vision to 2050, located in My Hung Commune (now Hung Loc Ward, Nam Dinh City).

Dung expressed that the people of Nam Dinh are delighted to see the planned high-speed railway route passing through the province and hope this will soon become a reality.

High-Speed Railway Route Options

The Ministry of Transport stated that the proposed high-speed railway route considered connectivity with existing and planned railway lines, urban railway networks in Hanoi and Ho Chi Minh City, major airports, seaports, key economic zones, and international rail connections (China, Laos, Cambodia).

In the northern region, starting from the Ngoc Hoi complex and Thuong Tin station, the route will connect with northern railway lines (Lao Cai – Hanoi – Hai Phong, Hanoi – Lang Son) via the eastern and western ring lines.

Additionally, the route will connect with central Hanoi via Metro Line No. 1, link to Noi Bai Airport through Metro Line No. 6, and connect to the seaports in the Hai Phong area, enabling international transportation with China through the Lao Cai – Hanoi – Hai Phong and Hanoi – Lang Son lines.

Central Region: The route will facilitate international connections with Laos at Vung Ang Station via the Mu Gia – Vung Ang – Vientiane line. At Chu Lai Station, it will connect with Chu Lai Airport, which is planned as a central freight transport hub for the region. The route will also link to Vung Ang Port (Vung Ang Station), Ky Ha Port (Chu Lai Station), and Van Phong Port (Ninh Hoa Station), and integrate with the railway line passing through the Central Highlands at Da Nang Station.

Southern Region: The route will connect with Ho Chi Minh City’s railway network and seaports (Cai Mep – Thi Vai) via the Bien Hoa – Vung Tau line (Trang Bom Station). It will also establish international transportation links with Cambodia through the Ho Chi Minh City – Loc Ninh line. In the Mekong Delta region, the route will follow the Ho Chi Minh City – Can Tho line. Thu Thiem Station will link to central Ho Chi Minh City and Tan Son Nhat International Airport through metro lines, with direct connectivity to Long Thanh Airport at Long Thanh Station.